Search
Banks want special recovery tribunals for high value debts
July 20, 2022
The request comes in the backdrop of a high pendency of cases in existing tribunals 39 DRTs and five DRATs countrywide.
As at February-end 2022, there were 1,61,034 pending cases at the DRTs, with DRT 2 Chandigarh having the most (10,578 cases), followed by DRT 3 Chandigarh (8,885) and DRT 3 Kolkata (7,171), as per Minister of State for Finance Bhagwat Karad’s reply to a question in the Lok Sabha.
There is high pendency even after the Central Government had in 2018 doubled the pecuniary limit to ₹20 lakh for debt recovery applications at DRTs.
“The existing tribunal benches cannot be entirely faulted for the pendency as they are almost full with cases. A ₹20-lakh case and a ₹100-crore case for adjudication and recovery of debts are treated the same way.
“High-value cases need to be taken up on priority basis. Hence, the Government needs to increase the number of special benches,” said a senior public sector bank official.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/